MIDF Research upgraded MBM Resources Bhd to "buy" from "neutral," raising target price to RM4.53 from RM3.40, citing strong confidence on the company's plans to become a major car assembler and distributor from a dealership operator.
This comes despite the company's first half ended June 30, 2012 financial performance lagged the consensus' estimates.
"We believe in MBM's future plans," MIDF said in a research note on Friday. MIDF expects MBM's second half to improve given the pent-up demand and better year-on-year performance for the company's vehicle sales and autoparts.
By 0315 GMT, shares of the company remained unchanged at RM3.92, while the broader index dropped 0.08 percent. -- Reuters
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